The biggest cryptocurrency, bitcoin, has shifted from the fringes of finance towards embrace by major investors, companies and even cities. Tesla Inc’s $1.5 billion bet has sent bitcoin to record highs of almost $50,000 and the Facebook-backed digital currency Diem, formerly known as Libra, aims to launch this year.

Central banks from the Group of Seven nations set out in October how a digital currency could function, though progress has been slow. The communique from last week’s G7 finance ministers’ meeting did not mention the nascent technology.

Here’s the latest on central bank digital currencies (CBDC).

WHAT ARE THEY?

CBDCs are the electronic equivalent of cash.

Like banknotes or coins, they would give holders a direct claim on the central bank, leapfrogging commercial banks. Backed by central banks, they would be as “risk-free” as traditional money, and let holders make online payments.

Access to central bank money beyond physical cash has so far been restricted to financial institutions. Extending it to the broader public would have major economic and financial repercussions.